DuPont Photomasks Expands Global Production Capacity with $18+ Million Investment in Capital Equipment

Business Wire, August 19, 1997

ROUND ROCK, Texas--(BUSINESS WIRE)--Aug. 19, 1997--DuPont Photomasks Inc. (NASDAQ: DPMI), more commonly referred to as DPI, today announced an investment of over $18 million in capital equipment as part of an aggressive expansion program to accommodate international customer demand for photomasks.

A CORE(R) 2564 writing tool with the PSM Alignment Option enabling the creation of multilevel, aligned phase shift masks is being installed on a new production line at DPI's facility in Ichon, Korea. In the United States, DPI's facility in Kokomo, Ind., is taking delivery of a MEBES(R) 4500 electron beam pattern generation system to anchor a new line that will produce leading edge binary photomasks. Production capacity will also expand in Europe, where DPI's Hamburg, Germany, facility will receive a CORE 2500 writing tool that was formerly installed in the Ichon plant.

"DuPont Photomasks has moved quickly to make these global capital improvements in response to customer demand for leading edge products," said J. Michael Hardinger, chairman and chief executive officer of DPI. "DPI has the accumulated experience and internal financial resources to respond to rapidly changing market requirements on a global scale."

Photomasks are critical components in the semiconductor manufacturing process that are used to pattern precision microscopic images of integrated circuits onto silicon wafers. The task of generating a photomask that will enable the manufacture of a semiconductor device varies in difficulty with the device's design complexity and feature sizes. For example, advanced DRAM devices now entering production utilize 0.25 micron design rules and frequently require photomasks employing sophisticated phase shift technology to deliver the necessary degree of precision for successful manufacture.

"The CORE 2564's phase shift mask production capabilities are required to support Korean DRAM and advanced logic fabrication," said Cheoroo Won, vice president of Asia/Pacific operations. "As the market share leader in the Asian market outside of Japan, DPI remains committed to making the required investments to provide the level of service our customers need."

"The MEBES 4500 is the industry's most advanced electron beam generation system and will be used to satisfy strong customer demand for leading edge photomasks," observed Art Launder, executive vice president of North American photomask operations. "The new system will ensure that we can adequately address the increasing need for photomasks to support the manufacture of semiconductor devices with 0.25 micron design rules."

DPI's Kokomo plant is primarily engaged in the production of photomasks to enable the manufacture of field programmable gate arrays, standard cell ASICs, and digital signal processors that typically employ 0.25 micron design rules.

"A large part of our Hamburg production facility's business consists of generating photomasks to support the manufacture of ASICs for use in consumer and telecommunications products," noted Gerard Cognie, executive vice president of European operations. "The re-deployment of the more mature CORE 2500 tool from Ichon is a very efficient way of addressing increased demand at the Hamburg facility for the photomasks needed to produce 0.35 micron devices. The new writing tool will increase plant capacity by roughly 25%, helping us to continue to build on our position as the merchant photomask market leader in Europe."

DuPont Photomasks Inc. (DPI)

DuPont Photomasks Inc. is the world's leading supplier of photomasks, operating globally from nine strategically located facilities in North America, Europe and Asia. The company produces and supplies photomasks as well as photoblanks (photomask substrates) and pellicles (protective covers for photomasks). DPI is headquartered in Round Rock, and had worldwide sales in fiscal 1997 of over $260 million. -0- Note: This release includes forward-looking statements based on management's current plans and expectations. Such statements involve risks and uncertainties which cannot be predicted or quantified and which may cause future activities and results of operations to differ from those suggested. For additional information, please refer to the company's filings with the Securities and Exchange Commission.

CONTACT: DPI Investor Relations

Dianne Schedler

512/310-6559

or

Edelman Worldwide

Barbara Holtz/John Satterfield

415/968-4033